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Chapter 11 Homework Sed Help Save CM 7 B28 Co. is considering the purchase of equipment that would allow the company to add a new

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Chapter 11 Homework Sed Help Save CM 7 B28 Co. is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment is expected to cost $372,800 with a 12-year life and no salvage value. It will be depreciated on a straight line basis. The company expects to sell 149,120 units of the equipment's product each year. The expected annual income related to this equipment follows. 2 points 235,000 Sipped Sale Conte Materials, labor and overhead (hoopt depreciation on how Depreciations wolpen Beiling and administrative expenses Total cost and expenses Pretax income The taxe (208) Net Income Book 22.000 01.062 23,300 136,367 76,65 19221 12.306 Print If at least an 8% return on this investment must be earned, compute the net present value of this investment. PV of $1. FV of $1. PVA of S1 and EVA of S1) (Use appropriate factor(s) from the tables provided.) Chart Values aru Based on: % * Select Chart Amount PV Factor Present Value $ 0 Net present value TABLE B.1" Present Value of 1 p=1/(+1 Rate % Periods 2% 3% 4% 5% 6% 7% 9% 12% 15% 1 2 3 10 11 12 13 16 15 16 17 18 19 20 25 30 35 30 0.9901 0.9803 09706 0.9610 0.9515 0.9420 0.9327 0.9235 0.9143 0.9053 0.8963 0.8874 0.8787 0.8700 0.8513 08528 0.8444 0.8360 3.8277 0.8195 0.779 0.7419 0,7059 0.6717 0.9804 0.9612 0.9423 0.9238 09057 0.8880 0.8706 0.8535 0.8368 0.8203 0.8043 0.7885 0.7730 0.7579 0.7430 0.7284 0.7142 0.7002 0.6864 0.6730 0.6095 0.5521 0.5000 0.4529 0.9709 0.9426 0.9151 0.8885 0.8626 0.8375 0.8131 0.7894 0.7564 0.7641 0.7224 0.7014 0.6810 0.5611 0.6419 0.6232 0.6050 0.5874 0.5703 0.5537 0.4776 0.4120 0.3554 0.3066 0.9615 09246 0.8890 0.8548 0.8219 0.7903 0.7599 0.7307 0.7026 0.6756 0.6496 0.6246 0.6006 0.5775 0.5553 0.5339 0.5134 0.4936 0.4746 0.4564 0.3751 0.3083 0.2534 02083 0.9524 0.9070 0.8638 0.8227 0.7835 0.7462 0.7107 0.6768 06446 0.6139 0.5847 0.5568 0.5303 0.5051 0.4810 0.4581 0.4363 0.4155 0.3957 0.3769 0.2962 0.2314 0.1812 0.1420 0.9434 0.8900 0.8396 0.7921 0.7473 0.7050 0.6651 0.6274 0.5919 0.5584 0.5268 0.4970 0.4688 0.4423 0.4173 0.3936 0.3714 0.3503 03305 03118 0.2330 0.1741 01301 0.0972 0.9346 0.8734 0.8163 0.7629 0.7130 06663 0.6227 0.5820 0.5439 0.5083 0.4751 0.4440 0.4150 0.3878 0.3624 0.3387 0.3166 0.2959 0.2765 0.2584 0.1842 0.1314 0.0937 00668 0.9259 0.8573 0.7938 0.7350 0.6806 0.6302 0.5835 0.5403 0.5002 0.4632 0.4289 0.3971 0.3677 0.3405 0.3152 0.2919 0.2703 0.2502 0.2317 0.2145 0.1460 0.0994 0.0676 0.0460 0.9174 0.8417 0.7722 0.7084 0.6499 0.5963 0.5470 0.5019 0.4504 04224 0.3875 0.3555 0.3262 0.2992 0.2745 0.2519 0.2311 0.2120 0.1945 0.1784 0.1160 0.0754 0.0490 0.0318 10% 0.9091 0.8264 0.7513 0.6830 0.6209 0.5645 0.5132 0.4665 0.4241 0.3855 0.3505 0.3186 0.2897 0.2633 0.2394 0 2176 0.1970 0.1799 0.1605 0.1486 0.0923 0.0573 0.035 0.0221 0.8929 0.7972 0.7118 0.6355 0.5674 0.5066 0.4523 0.4039 0.3606 0.3220 0.2875 07567 0.2292 0:20:46 01827 0.1631 0.1456 0.1300 0.1161 0.1007 0.0589 0.0334 0.0199 0.0107 0.8696 0.7561 0.6575 0.5718 0.4972 0,4323 0.3759 0.3269 0.2843 0.2472 0.2149 0.1869 0.1625 0.1413 01229 0.1069 0.0929 00808 0.0703 00611 0.0304 0.0151 00025 0.0037 hed to the promatranplich would you nooy 20 comencem 35.000 in trimin e 19 and 502 enero 20550 od 25000x5500 TABLE B.1" Present Value of 1 p=1/(+1 Rate % Periods 2% 3% 4% 5% 6% 7% 9% 12% 15% 1 2 3 10 11 12 13 16 15 16 17 18 19 20 25 30 35 30 0.9901 0.9803 09706 0.9610 0.9515 0.9420 0.9327 0.9235 0.9143 0.9053 0.8963 0.8874 0.8787 0.8700 0.8513 08528 0.8444 0.8360 3.8277 0.8195 0.779 0.7419 0,7059 0.6717 0.9804 0.9612 0.9423 0.9238 09057 0.8880 0.8706 0.8535 0.8368 0.8203 0.8043 0.7885 0.7730 0.7579 0.7430 0.7284 0.7142 0.7002 0.6864 0.6730 0.6095 0.5521 0.5000 0.4529 0.9709 0.9426 0.9151 0.8885 0.8626 0.8375 0.8131 0.7894 0.7564 0.7641 0.7224 0.7014 0.6810 0.5611 0.6419 0.6232 0.6050 0.5874 0.5703 0.5537 0.4776 0.4120 0.3554 0.3066 0.9615 09246 0.8890 0.8548 0.8219 0.7903 0.7599 0.7307 0.7026 0.6756 0.6496 0.6246 0.6006 0.5775 0.5553 0.5339 0.5134 0.4936 0.4746 0.4564 0.3751 0.3083 0.2534 02083 0.9524 0.9070 0.8638 0.8227 0.7835 0.7462 0.7107 0.6768 06446 0.6139 0.5847 0.5568 0.5303 0.5051 0.4810 0.4581 0.4363 0.4155 0.3957 0.3769 0.2962 0.2314 0.1812 0.1420 0.9434 0.8900 0.8396 0.7921 0.7473 0.7050 0.6651 0.6274 0.5919 0.5584 0.5268 0.4970 0.4688 0.4423 0.4173 0.3936 0.3714 0.3503 03305 03118 0.2330 0.1741 01301 0.0972 0.9346 0.8734 0.8163 0.7629 0.7130 06663 0.6227 0.5820 0.5439 0.5083 0.4751 0.4440 0.4150 0.3878 0.3624 0.3387 0.3166 0.2959 0.2765 0.2584 0.1842 0.1314 0.0937 00668 0.9259 0.8573 0.7938 0.7350 0.6806 0.6302 0.5835 0.5403 0.5002 0.4632 0.4289 0.3971 0.3677 0.3405 0.3152 0.2919 0.2703 0.2502 0.2317 0.2145 0.1460 0.0994 0.0676 0.0460 0.9174 0.8417 0.7722 0.7084 0.6499 0.5963 0.5470 0.5019 0.4504 04224 0.3875 0.3555 0.3262 0.2992 0.2745 0.2519 0.2311 0.2120 0.1945 0.1784 0.1160 0.0754 0.0490 0.0318 10% 0.9091 0.8264 0.7513 0.6830 0.6209 0.5645 0.5132 0.4665 0.4241 0.3855 0.3505 0.3186 0.2897 0.2633 0.2394 0 2176 0.1970 0.1799 0.1605 0.1486 0.0923 0.0573 0.035 0.0221 0.8929 0.7972 0.7118 0.6355 0.5674 0.5066 0.4523 0.4039 0.3606 0.3220 0.2875 07567 0.2292 0:20:46 01827 0.1631 0.1456 0.1300 0.1161 0.1007 0.0589 0.0334 0.0199 0.0107 0.8696 0.7561 0.6575 0.5718 0.4972 0,4323 0.3759 0.3269 0.2843 0.2472 0.2149 0.1869 0.1625 0.1413 01229 0.1069 0.0929 00808 0.0703 00611 0.0304 0.0151 00025 0.0037 hed to the promatranplich would you nooy 20 comencem 35.000 in trimin e 19 and 502 enero 20550 od 25000x5500 TABLE B.2 Future Value of 1 f=(1 + ir Rate 7% Periods 1% 2% 3% 4% 5% 6% 8% 9% 10% 12% 15% S88 ONO 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 25 1.0000 1.0100 1,0201 1.0303 1.0406 1.0510 1.0615 1.0721 1.0829 10937 1.1046 1.1157 1.1259 1.1381 1.1495 1.1610 1.1726 11843 1.1961 1.2081 1.2202 1.2824 1.3478 1.4166 14889 1.0000 1.0200 1,0404 10612 1.0824 1.1041 1.1262 1.1487 1.1717 1.1951 1.2190 1.2434 1.2682 1.2936 1.3195 1 3459 1.3728 1.4002 1.4282 1.4568 1.4859 1 6406 1.8114 1.9999 2. 2080 1.0000 1.0300 1.0609 1.0927 1.1255 1.1593 1.1941 1.2299 1.2668 1.3048 1.3439 1.3842 1.4258 1.4685 1.5126 1.5580 1.6047 1.6528 1.7024 1.7535 1.8061 20938 2.4273 28139 3.2629 1.00000 1.0400 1,0816 1.1249 1.1699 1.2167 1.2653 1.3159 1.3686 1.4233 1.4802 1.5395 1.6010 1,6651 1.7317 1.8009 1.8730 1 9479 2.0258 2.1068 2.1911 2.6658 3.2434 3.9461 4.8010 1.0000 1.0500 1.1025 1.1576 1,2155 1.2763 1.3401 14071 1.4775 1.5513 16289 1.7103 1.7959 1.8856 1.9799 20789 2.1829 2.2920 24066 2.5270 26533 3.3864 4.3219 55160 7.0400 1.0000 1.0600 1.1236 1.1910 1.2625 1.3382 1.4185 1.5036 1.5938 16895 1.7908 1.8983 20122 2.1329 22609 2.3966 25404 2.6928 2.8543 3.0256 32071 4.2919 5.7435 76861 10.2857 1,0000 1,0700 1.1449 1.2250 1.3108 1.4026 1.5007 1.6058 1.7182 1.8385 19672 2.1049 2.2522 2.4098 2.5785 2.7590 29522 3.1588 33799 3.6165 1.0000 10800 1.1664 1.2597 1.3605 1.4693 1.5869 1.7138 1.8509 1.9990 2.1589 23316 25182 2.7196 2.9372 3.1722 3.4259 3.7000 3.9960 43157 4,6610 6.8485 10.0627 14.7853 21.7245 1.0000 1.0900 1.1881 1.2950 1.4116 1.5386 1.6771 1.8280 1.9926 21719 2.3674 2 5804 2.8127 3.0658 3.3417 3.6425 3.9703 43276 4.7171 5.1417 56044 8.6231 13.2677 20.4140 314094 1.0000 1.1000 1.2100 1,3310 1.4541 1.6105 1.7716 1.9487 21436 2.3579 25937 2.8531 3.1384 3.4523 3.7975 4.1772 4.5950 5.0545 5.5599 6.1159 6.7275 10.8347 17.4694 28.1024 45 2593 1.0000 1.1200 1.2544 1.4049 15735 1.7623 1.9738 22107 2.4760 2.7731 3.1058 3.4785 3.8960 4.3635 4.8871 5.4736 6.1304 6.8660 1.0000 1.1500 1.3225 15209 1.7490 20114 2.3131 26600 3.0590 3.5179 4.0456 46524 5.3503 6.1528 7.0757 8.1371 9.3575 10.7613 12.3755 14.2318 16 3665 32.9190 66.2118 133.1755 267.8635 76900 3.8697 5.4274 7.6123 10 6766 149745 8.5128 9.6463 17.0001 29.9599 52.7996 93.0510 Used to compute the future value of new moon, What the accumulate of invested day compounded quarterly for 5 yean? Uning the con 21 and 1 - 25.00 quel periodiquement the L450. The accumulata 4472000x1400 a to (1 + i)" TABLE B.3: Present Value of an Annuity of 1 Rate Periods 1% 2% 4% 5% 6% 7% 8% 9% 10% 12% 15% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 25 30 35 40 0.9901 1.9704 2.9410 3.9020 4.8534 5.7955 6.7282 76517 8.5660 9.4713 10.3676 11.2551 12.1337 13.0037 13.8651 14.7179 15.5623 16.3983 17.2260 18.0456 22.0232 25.8077 29.4086 32.8347 0.9804 1.9416 2.8839 3.8077 4.7135 5,6014 6.4720 7.3255 8.1622 8.9826 9.7868 10.5753 11.3484 12.1062 12.8493 13.5777 14.2919 14.9920 156785 16.3514 19.5235 22 3965 24.9986 27 3555 0.9709 1.9135 2.8286 3.7171 4.5797 5.4172 6.2303 7.0197 7.7861 8.5302 9.2526 9.9540 10.6350 11.2961 11.9379 12.5611 13.1661 13.7535 143238 14.8775 17.4131 19.6004 21.4872 23.1148 0.9615 1.8861 2.7751 3.6299 4.4518 5.2421 6.0021 6.7327 7.4353 8.1109 8.7505 9.3851 9.9856 10.5631 11.1184 11.6523 12.1657 12.6593 13.1339 13.5903 15.6221 17.2920 18 6646 19.7928 0.9524 1.8594 2.7232 3.5460 43295 5.0757 5.7864 6.4632 7.1078 7.7217 8.3064 8.8633 9.3936 9.8986 10.3797 10.8378 11.2741 11.6896 12.0853 12.4622 14.0939 15.3725 16.3742 17.1591 0.9434 1.8334 2.6730 3.4651 4.2124 4.9173 5.5824 6.2098 6.8017 7.3601 7.8869 8.3838 8.8527 9.2950 9.7122 10.1059 10.4773 10.8276 11.1581 11.4699 12.7834 13.7648 14.4982 15.0463 0.9346 1.8080 2.6243 33872 4.1002 4.7665 5.3893 5.9713 6.5152 7.0236 7.4987 7.9427 8.3577 8.7455 9.1079 9.4466 9.7632 10.0591 10.3356 10.5940 11.6536 12.4090 12.9472 13 3317 0.9259 1.7833 2.5771 3.3121 3.9927 46229 5.2064 5.7466 6.2469 6.7101 7.1390 7.5361 7.9038 8.2442 8.5595 8 8514 9.1216 9.3719 9.6036 9.8181 10.6748 11.2578 11,6546 11.9246 0.9174 1.7591 25313 3.2397 3.8897 4 4859 5.0330 5,5348 5.9952 6.4177 6.8052 7.1607 7.4869 7.7862 8.0607 8.3126 8.5436 8.7556 8.9501 9.1285 9.8226 10.2737 10.5668 10.7574 0.9091 1.7355 2.4869 3.1699 3.7908 4.3553 4.8684 5.3349 57590 6.1446 6.4951 6.8137 7.1034 7.3667 7.6061 7.8237 8.0216 8.2014 8.3649 8.5136 9.0770 9.4269 9.6442 9.7791 0.8929 1.6901 2.4018 3.0373 3.6048 4.3114 4.5638 4.9676 53282 5.6502 5.9377 6.1944 6.4235 6,6282 6.8109 6.9740 7.1196 7.2497 7.3658 7.4694 7.8431 8.0552 8. 1755 8.2438 0.8696 1.6257 22832 28550 3.3522 3.7845 4.1604 4.4873 4.7716 50188 5.2337 5.4206 5.5831 5.7245 5.8474 5.9542 6.0472 6.1280 6.1982 6.2593 6.4641 6.5660 6.6166 6.6418 Used to calculate the sale of actics of equal payment and the end at each predmple What is the prevaleco 2.000 per year for 10 years aming an ministrador For 10.1.the PV factor is 17 32 year for 10 years in the equivalent of 512.835 de 2.000 6.4177) f=[(1 + iyu -- 1/2 TABLE B.4 Future Value of an Annuity of 1 Rate Periods 1% 2% 3% 5% 6% 7% 10% 12% 15% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 25 30 35 40 1.0000 1.0000 1.0000 2.0100 20200 2.0300 3.0301 3.0604 3.0909 40604 41216 4.1836 5.1010 5.2040 5.3091 6.1520 6.3081 6.4684 72135 7.4343 7.6625 8.2857 8.5830 8.8923 9.3685 9.7546 10. 1591 10.4622 10.9497 11.4639 11.5668 12.1687 12.8078 12.6825 13.4121 14.1920 13.8093 14.6803 15.6178 149474 15.9739 17.0863 16.0969 17.2934 18.5989 $7.2579 18.6393 20,1569 18.4304 20.0121 21.7616 19.6147 21.4123 23.4144 20.8109 22.8406 25.1169 22.0190 24 2974 26.8704 28.2432 320303 36.4593 34.7849 40.5681 47.5754 41.6603 49 9945 60.4621 48.8964 60.4020 75.4013 1.0000 1.0000 2.0400 2.0500 3.1216 3.1525 4.2465 4.3101 5.4163 5.5256 6.6330 6.8019 7.8983 8.1420 9.2142 9.5491 10.5828 11.0266 12.0061 12.5779 13.4864 14 2068 15 0258 15.9171 16.6268 17.7130 18.2919 19.5985 20.0236 21.5786 21.8245 23.6575 23.6975 25.8404 25.6454 28.1324 27.6712 30.5390 29.7781 33,0660 41.6459 47.7271 56.0849 66.4388 73.6522 90.3203 95.0255 1207998 1.0000 2.0600 3.1836 43746 5,6371 6.9753 8.3938 9.8975 11.4913 13.1808 149716 16,8699 18.8821 21.0151 23. 2760 25.6725 28.2129 30.9057 33.7600 36.7856 54 8645 79.0582 111.4348 154 7620 1.0000 2.0700 3.2149 4.4399 5.7507 7.1533 8.6540 10.2598 11.9780 13.8164 15.7836 17.8885 20.1406 22.5505 25.1290 27.8881 30.8402 33.9990 37.3790 40.9955 63 2490 944608 138.2369 199.6351 1.0000 20800 3.7464 4.5061 5.8666 7.3359 8.9228 10.6366 12.4876 14.4866 16.6455 18.9771 21.4953 24.2149 27.1521 30.3243 33.7502 37.4502 41 4463 45.7620 73.1059 113.2832 172.3168 259.0565 1.0000 20900 3.2781 4.5731 5.9847 7.5233 9.2004 11.0285 13.0210 15.1929 17.5603 20.1407 22.9534 26.0192 29.3609 33.0034 36.9737 41:3013 46.0185 51. 1601 84.7009 136.3075 215.7108 337.8824 1.0000 10000 2. 1000 21200 3.3100 3.3744 4.6410 4.7793 6.1051 6.3528 7.7156 8.1152 9.4872 10.0890 11.4359 12.2997 13.5795 14.7757 15.9374 17.5487 18.5312 20.6546 21.3843 24.1331 24.5227 28.0291 27.9750 32.3926 31.7725 37.2797 35 9497 42.7533 40.5447 48.8837 45.5992 55.7497 51.1591 63.4397 57.2750 72.0524 98.3471 133.3339 164 4940 241 3327 2710244 131.6635 442 5926 767.0914 1.0000 21500 3.4725 4.9934 6.7424 8.7537 11.0668 13.7268 16.7858 20.3037 24.3493 29.0017 34.3519 40.5047 47.5804 55.7175 65.0751 75.8354 88.2118 102.4436 212.7930 434.7451 381.1702 1.779.0903 Used to calculate the future value of a series of equal payment made the end of each poreumple: What is the future value of St. per year for singan anhalinemoto the factor 73359.54.000 per year to 4X750

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